Energy budgeting and control: a new approach for an industrial plant

Abstract

Purpose

The purpose of this paper is to provide a method for planning and controlling energy budgets for an industrial plant. The developed method aims to obtain a very high confidence of predicted electrical energy cost to include into the estimation of budget and a continuous control of energy consumption and cost.

Design/methodology/approach

The authors propose a methodology that refines effectiveness and efficiency of budget estimation. The method relies on a three‐stage analysis: energy consumption characterization and forecasting, energy budget formulation and energy budget control. In particular, this paper deals deeply with the second and the third stages, i.e. energy budgeting and control. The methodology has been developed on the basis of a continuous improvement philosophy and project management techniques. A discussed case study shows the potential of the methodology in order to discover energy consumption inefficiencies.

Findings

Energy budgeting and control has been implemented within a set of first and second level metrics. The first level indicators allow identifying the effect of an increase of specific consumption beyond the predicted. The second level indicators allow identifying the effect of variations of price, volume, mix or loading bands from the predicted.

Research limitations/implications

In the paper climatic variations are not considered, limiting the energy drivers to those related to production volumes.

Practical implications

The method can be considered as a practical guide for energy budget planning and control of any industrial consumer.

Originality/value

A new approach to energy budgeting and control is proposed, allowing the impact of different specific consumption or production plans (volume, mix, and load bands) to be calculated.

Citation

Cesarotti, V., Di Silvio, B. and Introna, V. (2009), "Energy budgeting and control: a new approach for an industrial plant", International Journal of Energy Sector Management, Vol. 3 No. 2, pp. 131-156. https://doi.org/10.1108/17506220910970551